Lazio or Latium is one of the 20 administrative regions of Italy. Situated in the central peninsular section of the country, it has 5,714,882 inhabitants and a GDP of more than €212 billion per year, making it the country's second most populated region and second largest regional economy after Lombardy. The capital of Lazio is Rome, which is also the capital and largest city of Italy, and completely encircles Vatican City.